Introducing Margin Trading on the Blockchain.com Exchange
Ever since we launched the Exchange back in 2019, one of the most commonly-requested features is margin trading. I’m pleased to announce today that we’re launching margin — with up to 5x leverage — to users in over 150 countries.
I’m particularly pleased that we’re able to provide fees started from .12% daily (.02% every four hours) on open margin positions, making Blockchain.com’s Exchange margin rates among the lowest and most competitive in the industry.
What is margin trading?
Margin trading allows you to increase your potential for profit through leverage, giving you increased buying and selling power on each trade.
For example, if a trader wants to purchase $1,000 worth of Bitcoin on the BTC-USD pair with 5X leverage, they’ll only need $200 in either BTC or USD as collateral in the account to have a full position worth $1,000. Delivering flexibility with funding management, users can use either a base or counter currency to open margin positions. Margin trading also allows users the ability to diversify trading portfolios since they don’t need to have the entire trade balance to enter into a margin position.
Before trading with leverage, it’s important to remember that while you may have the possibility of higher gains, there is also greater risk inherent to leveraged trades in crypto. The bottom line, make sure you understand the mechanics of margin trading before you get started.
We pulled together some resources in our Support Center.
How to trade on margin at a glance
- Log in to the Exchange
- In the trade ticket, select Margin (you’ll have to enable margin your first time)
- Indicate your trade type and the amount you wish to trade
- Select between 2x and 5x leverage for your trade (the higher the leverage the higher the risk, learn how to manage risk)
- Select your collateral type and amount, which is required to open a margin position
- Optional: set a Stop Loss price level to automatically close out unprofitable positions and manage your downside risk.
- Place order
You can review detailed instructions in the help center.
Who is eligible to trade with margin?
Margin trading is currently supported for Gold-verified users but is not currently available for users in the US, UK, Canada, Japan, Germany, Austria, Italy, France, The Netherlands and select other countries. The product currently supports the BTC/USD trading pair.
We’re excited that users around the world will now have access to this much-desired feature, and we look forward to shipping more products and features for Exchange customers.
To learn more about margin trading, please visit: Support Center
When considering trading on margin, you should determine how the use of margin fits your own investment philosophy. It is important that you fully understand the risks, rules, and requirements involved in trading digital assets on margin. Margin trading increases your level of market risk. You may lose some or all of the collateral you post in connection with a margin trade. Blockchain.com may initiate the sale of digital assets in your account, without contacting you, to meet a margin call. You are not entitled to an extension of time on a margin call. Further details will be set out in the Margin user agreement.